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Xilinx Doesn't Flinch

The chipmaker stays its second-quarter course, a day after rival Altera lowers margin targets.

Xilinx

(XLNX)

kept its financial targets steady late Wednesday, one day after its largest competitor lowered its margin targets.

Xilinx, which makes programmable chips, said it still expects fiscal second-quarter sales to be between $405.4 million and $421.6 million, for flat to 4% sequential growth. Gross margins are still expected to be between 61% and 62%.

Analysts had expected sales of $415 million and earnings of 22 cents a share, on average, according to Thomson First Call.

Xilinx also stated that its tax rate will be 15%, down from an earlier projection of 24%, because of a previously announced favorable court ruling regarding taxes.

San Jose, Calif.-based Xilinx makes microchips that can be programmed for use in a variety of products, including data storage applications, automobiles and computers.

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Its largest competitor,

Altera

(ALTR)

, on Tuesday held its sales targets steady but reduced its gross-margin expectations because of what it said is

a permanent shift away from certain low-volume, high-margin semiconductors.

Shares of Altera dropped almost 8% to $20.11 during Wednesday's regular session; in recent after-hours trade they were off 2 cents to $20.09.

Xilinx shares fared better, closing nominally higher at $28.44. Shares were not active in late trading after the update was announced.